YORBA LINDA, Calif.—(BUSINESS WIRE)—June 30, 2006—
netGuru, Inc. (Nasdaq:
NGRU) reported financial results
for fiscal 2006 fourth quarter and fiscal year ended March 31, 2006.
On November 18, 2005, the Company completed the sale of its Research
Engineers International ("REI") business to Bentley Systems,
Incorporated, and in January 2006 the Company sold its French
subsidiary. All amounts pertaining to the Company's REI business and
French subsidiary are accounted for as discontinued operations. Final
fiscal 2006 year-end results included a net gain on sale of the REI
business of $21.5 million.

Net revenues for the quarter were $1.10 million, compared to $1.13
million in fourth-quarter fiscal 2005. Revenues from collaborative
software sales and services were $274,000, compared to $203,000 in
fourth-quarter last year; revenues from IT services were $822,000,
compared to $926,000. Gross profit for the quarter was $517,000 versus
$554,000 in fourth-quarter a year ago.

Total operating expenses for the quarter increased $360,000 to
$1.56 million from $1.20 million in fourth-quarter fiscal 2005 due
primarily to an increase in lawsuit settlements and professional fees.
Operating loss for the quarter was $1.04 million, compared to an
operating loss of $647,000 in fourth-quarter last year.

Net loss for the quarter was $1.85 million, or $0.10 per share,
and included a loss from continuing operations of $927,000, or $0.05
per share, and a loss from discontinued operations of $925,000, or
$0.05 per share. For fiscal 2005 fourth quarter, net income was
$138,000, or $0.01 per diluted share, and included a loss from
continuing operations of $769,000, or $0.04 per diluted share, and
income from discontinued operations of $907,000, or $0.05 per diluted
share.

Net revenues for fiscal 2006 were $3.87 million, compared to $4.55
million in fiscal 2005. Net revenues from collaborative software
products and services were $969,000 versus $748,000 in fiscal 2005,
and net revenues from IT services were $2.90 million versus $3.80
million in the prior fiscal year. Gross profit for fiscal 2006 was
$1.63 million, compared to $1.99 million in fiscal 2005.

Operating expenses for fiscal 2006 totaled $7.76 million, which
included an impairment charge of $2.92 million to account for a
third-quarter write off of goodwill related to the IT services and
collaborative software divisions. Operating expenses in fiscal 2005
were $4.38 million. Operating loss for fiscal 2006 was $6.13 million
versus an operating loss of $2.39 million in fiscal 2005.

Net income for fiscal 2006 was $14.7 million, or $0.77 per diluted
share, and included a loss from continuing operations of $6.57
million, or $0.34 per diluted share, and income from discontinued
operations of $21.2 million, or $1.11 per diluted share. Net loss for
fiscal 2005 was $788,000, or $0.04 per basic share, and included a
loss from continuing operations of $2.79 million, or $0.15 per basic
share, and income from discontinued operations of $2.00 million, or
$0.11 per basic share.

The Company commented that a special committee of its board of
directors has been evaluating the possible divestiture of some of or
all of the Company's remaining assets and operations, as well as
possible mergers and/or strategic acquisitions for the Company and its
information technology, collaborative software, and engineering
business process outsourcing businesses. Discussions with public and
private entities have been, or are being, held involving potential
asset purchases, common stock purchases, and reverse mergers. The
Company anticipates entering into merger and/or sale agreement(s) with
one or more parties; however, neither the timing nor completion of a
deal can be assured.

The Company further commented that its future capital requirements
will depend upon many factors, including sales and marketing efforts,
the development of new products and services, possible future
corporate mergers or strategic acquisitions or divestitures, the
progress of research and development efforts, and the status of
competitive products and services. The Company believes that the
proceeds that remain from its sale of its REI business, together with
its operating revenues and the proceeds from the sale of its French
subsidiary, will be adequate to extinguish all of its remaining
liabilities and fund its current operations through October 2006.
However, to the extent the Company is in need of any additional
financing, there can be no assurance that any such additional
financing will be available on acceptable terms, or at all. In
addition, any future financing may cause significant dilution to
existing stockholders.

About netGuru

netGuru is an engineering services company offering engineering
business process outsourcing (EBPO) services for the architecture,
engineering, and construction (A/E/C) industry; document/project
collaboration software/solutions for A/E/C companies, enterprise
software providers, software integrators, and other businesses engaged
in document/project-centric operations; and technical services and
support. netGuru offices are located in the United States, Europe, and
India. For more information, please visit
www.netguru.com.

With the exception of historical or factual information, other
matters discussed in this press release, including opportunities for
the Company's remaining operations, discussions with interested
parties, progress being made, timing and completion of any agreement,
sufficiency of the Company's assets and revenues, and the need for and
availability and terms of additional financing, are forward-looking
statements that involve risks and uncertainties. Actual future results
may differ. Factors that could cause or contribute to such differences
in results include, but are not limited to, the special committee's
and Company's ability to identify, negotiate and consummate any
divestiture or other strategic transaction, netGuru's ability to
conserve resources and implement further reductions in ongoing
expenses and/or increase revenues, market conditions regionally and
worldwide, demand for collaborative and IT products and services,
technological change, economic conditions, changes in governmental
regulations and policies, competitive products and services,
unforeseen issues, and other factors discussed in the "Risk Factors"
Section and other sections of the Company's Form 10-KSB for the fiscal
year ended March 31, 2006, and other filings made with the U.S.
Securities and Exchange Commission.